Los Angeles loan originations slowdown as lenders tighten terms and raise borrowing standards
CRE Loan Origination Volume ($)
Loan originations have declined sharply over the past three years after hitting record highs in 2021. While the slowdown varies across multifamily, office, retail, and industrial sectors, all asset types have been affected.
In 2024, multifamily led with $13.7B in originations, followed by office and industrial at nearly $7B respectively, and retail at just $3B. With office market struggles persisting, both owners and lenders are favoring multifamily, as housing demand continues to grow. A significant portion of these loans are refinances and development financing, with many owners navigating loan defaults due to economic pressures.
Three rate cuts in 2024 and two more expected in 2025 may slightly ease lending conditions, but banks and institutional lenders remain risk-averse. With nearly $70B in loans maturing by 2030, many owners will face tough decisions—refinance, seek alternative lenders, or sell assets.
March 14, 2025
